The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, February 8, 1996             TAG: 9602080631
SECTION: LOCAL                    PAGE: B1   EDITION: FINAL 
SOURCE: BY ALETA PAYNE AND KAREN WEINTRAUB, STAFF WRITERS 
DATELINE: VIRGINIA BEACH                     LENGTH: Long  :  127 lines

CUTS: COUNCIL WARY OF PLAN TO MAKE UP FOR POSSIBLE NEW SHORTFALL.

City Council members said Wednesday that they lack the money and the will to bail out the school system again this year.

On Tuesday night, the school board voted 10-1 to put the council on notice that the district might need up to $4.4 million to finish out the fiscal year because of a shortfall in state and federal revenue. The city has agreed to make up last year's $12.1 million deficit.

Board members requested that the council commit to fund this year's shortage, which is expected to be at least $1 million. And they sent along a list of 15 potential cuts that will be considered if more revenue is not found. The size of the shortfall will determine which cuts are necessary.

The cuts include several items guaranteed to stir the electorate, including the elimination of spring athletics and the implementation of a week of unpaid leave after school ends in June for employees who work 11 or 12 months of the year.

``Obviously, the action was to pass it to the City Council and say, `If you don't give us more money it's going to be your fault that these cuts have to be instituted,' '' Council member Barbara M. Henley said. ``There has to be some understanding that in order to get that amount of money, we may well be talking about a tax increase for the remainder of this year.

``We can fund the moon if the public is willing to buy it,'' she added. ``I don't think they are. ''

Mayor Meyera E. Oberndorf said she would consider holding a referendum, as early as May, to see if the public prefers the proposed cuts or a tax increase to avoid them.

``There seems to be a misconception that the council has a bag of money somewhere and that we just need to call on that,'' she said. ``The public needs to be consulted as to the amount they would like to finance in making the board's philosophy and directions reality.''

School employees and students were angered by the proposed cuts.

``In no way is it fair to ask employees to bear the brunt of incompetence,'' said Vickie J. Hendley, president of the Virginia Beach Education Association. ``This is totally unacceptable. The federal government has let us down; the state government has let us down.''

Now it's time to turn to the council, she said.

Quinci Martin, a freshman at Cox High School, said the possible reductions would be bad for students, too.

``The spring sports are the way to college (for many students), and a lot of the activities keep people off the streets,'' she said. ``If the school wants to produce productive citizens, they've got to keep these activities.''

The district has wrestled with financial problems for much of the year.

Officials found the same problems that led to the $12.1 million shortfall for the 1994-95 fiscal year were continued into the current budget.

After an initial round of reductions, school officials expected expenditures to come in below the budgeted amount. But revenues have fallen off more severely than expected.

In January, board members were told they faced a shortfall of $1 million to $4.4 million, and school administrators suggested they go to the City Council to ask for the money to cover such a deficit. At that time, several board members asked for a list of potential cuts to make up the shortfall if additional money was not forthcoming.

On Tuesday night, it was evident that none of them wanted to turn to these areas, but it also was clear that they wanted the council and the community to know what could end up on the chopping block.

``I don't want anyone to lose a day's pay,'' said board member Elsie Barnes. But if such cuts occur, employees need to be given as much notice as possible, she said.

Some council members said the School Board will have to solve its own fiscal problems. If the board believes the cuts it outlined Tuesday are needed, several council members said they would support those cuts.

``It appears that they've cut some sensitive areas in their budget with the idea that it would put pressure on the council to fund those activities,'' council member Louis R. Jones said, ``whereas the real responsibility for the shortage lies with them and them alone, and they're the ones who should be answering to the citizens.

``They've already received the money from the council, and they've apparently overspent,'' Jones said.

``The real question is, `Should the council be funding something twice?' ''

Council member W.W. Harrison Jr. said he doesn't agree with cutting programs, such as spring athletics, but he said he will live with whatever the board decides. Instead of making cuts that hurt students, Harrison said he would rather see board members, top administrators and other staff members volunteer to work for some period without pay.

``Frankly, I was hoping that the cuts would come in the salary line items and they would start by forgoing their own salaries for the remainder of the term,'' he said.

Harrison said he believes his wife, a guidance counselor in the district, and other employees who can live without a day's pay would be willing to help bail out the district.

``I don't think we can continue to dig into the taxpayer's pocket to fund a school system that seems to be out of control,'' Harrison said. ILLUSTRATION: Graphic

POTENTIAL CUTS

Potential cuts to eliminate the Virginia Beach schools' projected

shortfall for the 1995-96 fiscal year:

One day of unpaid leave for all staff (close all schools and

offices on June 14, a teacher records day) - $1,450,000

Close all departments and schools June 24 through June 28 (No pay

for 11- and 12-month employees) - $1 million

Eliminate cafeteria monitors at elementary schools - $90,000

Eliminate all part-time help - $60,000

Eliminate spring athletics (including salary supplements,

officials, police and equipment) - $360,000

Delay all summer school programs until July 1, 1996 - $30,000

Eliminate all workshops for balance of year - $30,000

Defer all repairs to schools - $225,000

Do not staff any vacancies, except teachers and bus drivers -

$80,000

No overtime, except in emergencies - $50,000

Cancel before-school and after-school activities including child

care - $100,000

Do not refer students to private institutions (e.g. Richard

Milburn and regional special education program) - $200,000

Eliminate the Student Leadership Summer Workshop - $40,000

Delay summer recreation programs until July 1, 1996 - savings on

utilities - $40,000

Charge Parks and Recreation Department for utility costs for

before- and after-school activities for first semester 1995-96 -

$250,000

Total Reductions $4,005,000

Source: Virginia Beach Public School District

KEYWORDS: VIRGINIA BEACH SCHOOL BOARD BUDGET by CNB